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The purpose of this paper is to obtain new knowledge about the accounting measurement of financial sustainability in local governments, by studying the influence of political factors on the evolution of income statements.

This paper analyses income statements of Spanish municipalities from 2006 to 2014, together with mayor profiles and political-institutional factors, using the generalised method of moments system.

The income statement represents a useful measure to assess financial sustainability, showing the effect of political factors on three dimensions proposed by IFAC (i.e. service, revenue and debt), such as ideological coincidence, political competition, political ideology, and absolute majority or political fragmentation.

The findings can be useful for policymakers and accountants responsible for accountability, supervisory bodies, fiscal authorities, voters, users of public services and other stakeholders interested in governmental income statements.

In the Eurozone, the crisis of government finance has made the citizens and the policymakers question the size and volume of public services. Likewise, in countries such as Spain, politicians remain one of the main problems for citizens. These circumstances make it very interesting and timely to study the accounting measurement of financial sustainability and its political explanations.

The findings provide new empirical evidence about the accounting measurement of financial sustainability in local governments, and they identify political factors that influence the evolution of income statements.

In recent years, international bodies and public opinion have recommended that governments adopt social responsibility practices to inform and be accountable to citizens about their sustainability actions in environmental, social and economic fields (Galera et al., 2014) and restore citizens' confidence in public authorities (Crane et al., 2008; Shepherd et al., 2010). This chapter reviews the literature on measuring and reporting sustainable performance in the public sector. Analyzing 35 studies published in a period of 10 years (from 2012 to 2021), we address two specific research questions: How and to what extent have public organizations changed to integrate sustainability reporting (SR) systems? What are the enabling organizational factors in adopting SR in public organizations?

First, the paper examines the extent of environmental disclosures (EDs) made by the Malaysian local governments (LGs) on their websites. Second, it examines the patterns of disclosure with the aim of investigating the underlying motive behind the EDs.

A descriptive content analysis was employed to measure the EDs. A disclosure instrument, based on the extant studies, is designed to facilitate the measurement process.

The results suggest that LGs of various levels, have taken the initiative to report EDs on their websites even in the absence of any statutory reporting regulations either by the state or federal government. Differences in the types of EDs are also apparent and consistent with the premise of legitimacy theory.

A paucity of prior studies measuring EDs made at the LG level is observed in the literature. Research evidence focussing on the EDs reported on the websites is even more scarce. This lack of research contributes to a limited understanding on the development and challenges of the environmental reporting practices within the developing country's perspective. Moreover, generalising the findings of studies conducted in developed countries may not be possible due to a number of regulatory, political and socio-economic factors.

The purpose of this paper is to analyse if citizens’ searches on the internet coincide with the services that municipal websites offer. In addition, the authors examine municipal webpage rankings in search engines and the factors explaining them.

The empirical study, conducted through a sample of Spanish city councils, contrasted if the information that can be found on a municipal website fits with citizens’ demands. This has been done by comparing the most-searched keywords with the contents of municipal websites.

A positive relationship between the supply and demand of municipal information on the internet has been found, but much can still be improved. Analysed administrations rank the basic data of the organisation, as well as some of the fundamental competences thereof, at the top in search engines, but the results are not entirely effective with some keywords still highly demanded by citizens, such as those related to employment or tourism. Factors explaining internet ranking include the number of pages of the municipal website, its presence in social networks and an indicator designed to measure the difficulty of ranking the municipal place-name.

The results obtained from this study provide valuable information for municipal managers. Municipal websites should not only include information in which citizens are interested, but achieve accessibility standards, have a responsive web design, and follow the rules of web usability. Additionally, they should be findable, which also requires improvement in terms of the design of the municipal website thinking in search engines, particularly in terms of certain technical characteristics that improve findability. A municipal website that wants to have a good positioning should increase its contents and attain the maximum degree possible of visibility in social networks.